Trans Mountain pipeline remains divisive topic in Saskatchewan

Canada to Buy Kinder Morgan Pipeline for $3.5 Billion

Ottawa Buying Trans Mountain Pipeline Assets for $4.5 billion

The federal government's decision to buy the assets of the Trans Mountain pipeline for $4.5 billion prompted swift reaction Tuesday from local First Nations who are opposing the project.

Horgan told reporters in Victoria the federal government's takeover of the project changes the legal situation, but his contentious legal action isn't aimed at any specific project.

Wilkinson said the government had to act to ensure summer construction on the pipeline would go ahead.

Kinder Morgan Canada will continue to own some of the assets, including crude storage, rail terminals and a condensate pipeline, he said.

Kinder Morgan had issued a May 31 ultimatum for clarification on the status of the project, which is now mired in legal challenges raised by B.C. Premier John Horgan and also facing Lower Mainland opposition with protests in Burnaby and Vancouver. "Horgan and the NDP will continue to play politics with British Columbia's future, and this time it will cost us billions".

Berman is a director of Stand.earth, one of the groups that organized an anti-pipeline protest in Vancouver on Tuesday after Finance Minister Bill Morneau announced the government's plans for the pipeline between Edmonton and Burnaby, B.C. Another protest is planned in Victoria on Thursday.

"But even besides that, we have always opposed this expansion of pipeline projects", said Mark Bigland-Pritchard with Climate Justice Saskatoon.

Alberta Premier Rachel Notley, who also attended the event, said that she is very pleased by the news of the federal government's commitment to build Trans Mountain.

According to Hudema, the movement opposing the project " will not back down" following the government's purchase.

The feds said that the investment represents a fair price for Canadians, and will allow the project to proceed under the ownership of a Crown corporation.

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Alberta's oil industry has seen its attempts to have other pipeline projects built sunk by regulatory and political opposition, including cross-border projects such as Keystone XL, still stalled because of opposition in Nebraska and South Dakota.

Defending the government's decision, Prime Minister Justin Trudeau said, "Canada loses C$15 billion a year because oil can not be exported anywhere but the United States".

"The auditor general just said the Liberals are $3.2 billion short in funding clean drinking water on reserves around Canada".

Energy East, which would have converted a natural gas pipeline to oil and extended it all the way to New Brunswick, was cancelled last fall when TransCanada decided conditions had changed, including new federal regulations and lower oil prices.

Kinder Morgan has agreed to take part in marketing the project; Ottawa wants to avoid becoming a pipeline owner if at all possible.

Kinder Morgan was prepared to spend $7B in Canada to build a pipeline, now we have paid them $4.5B to walk away from Canada, possibly build pipelines outside of Canada to compete with Canada. "We'll do whatever it takes to stop this pipeline".

He said it sometimes seems the cost of being Canadian is to help patch together troubled megaprojects.

Ottawa's purchase of the pipeline was meant to provide investors certainty that the project will move forward.

By buying the pipeline outright, the Trudeau government has gone all in on this project.

The decision to nationalize the Trans Mountain pipeline is not a victory, it's a failure.

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